The rapid advancement of technology has made computer animation
available to the masses and the animation industry is one of the fastest
growing industries. The demand for animated entertainment has expanded
with the increase in broadcasting hours by cable and satellite TV along
with the growing popularity of the Internet. In the past, animation
series were aimed at children aged nine and below. In recent years
however, TV stations have been producing animation series for teenagers,
adults and the whole family. Animation series like The Simpsons and King
of the Hill have been successfully aired on primetime TV.

The major markets include the United States, Canada, Japan, France,
Britain and Germany. Licensing operations for T-shirts, caps and other
items have als been a major source of revenue for animation companies.
In Japan, several successful computer games have crossed over and have
become animated series like Pokemon, Monster Farm, Power Stone and
Detective Conan.

Another key trend is the outsourcing of animation content to Asia. This
market is increasingly being tapped by North American film and
television program producers.

The major factor behind this shift of computer animation production to
the Asia/Pacific region continues to be the availability of low cost,
powerful computer animation platforms and much lower labor rates in the
Asian and Pacific Rim countries compared to North America and Europe.
The bulk of the outsourcing happens for 2D animation content with some
amount of 3D content.

MARKET WATCH

The rapid advancement of computer technology has made computer animation
available to the masses. The major animation markets include the United
States, Canada, Japan, China, France, Britain, Korea and Germany. The
outsourced computer animation production market is increasingly being
tapped by North American and European film and television program
producers. The major factors behind outsourcing of animation content to
the Asia/Pacific region are the availability of trained skills at lower
labor rates.

Key facts

- In the past, animation series were aimed at children aged nine and
below.

- The rapid advancement of computer technology has made computer
animation available to the masses.

- The major animation markets include the United States, Canada, Japan,
China, France, Britain, Korea and Germany.

- The emerging animation countries are China and India.

- The outsourced computer animation production market is increasingly
being tapped by North American and European film and television program
producers.

- The major factors behind outsourcing of animation content to the
Asia/Pacific region are the availability of trained skills at lower
labor rates.

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